Omantribune
Oman Tribune
Omantribune
Omantribune Search News
Web Oman
    Google Search Button
      Tribune
- Oman
- Soccer World Cup
- Other Top Stories
- Middle East
- Business
- Sports
- India
- Pakistan
- Asia
- Europe
- Americas
- Columnists
- Editorial
- Oman Mirror
- Special Features
- Cinema
- PDF Pages
- Weather
- Travel
- Currency Rate
- Hospitals
- Pharmacies
- Services
- Flight Timings
- Museum Timings
Omantribune Home Omantribune About Us Omantribune Advertising Information Omantribune Archives Omantribune Subscribe-Form Omantribune Jobs Omantribune Contact Us
Monday, December 22, 2014  

Tata Motors Q2 net rises 10.5%
MUMBAI Tata Motors, the country’s largest carmaker by revenue, posted a 10.5 per cent gain in quarterly net profit, but lagged estimates as pricing pressure impacted its Indian business margins and slowing economic growth impacted demand for commercial vehicles.

The car maker said net profit rose to Rs20.75 billion in July-September from Rs18.77 billion a year ago, while revenue increased 20 per cent to Rs434.03 billion on rising demand at its key Jaguar Land Rover subsidiary. The operating margin for its India business fell to 5.9 per cent for the quarter down from 7.2 per cent in the year ago period.

Tata Motors’ Chief Financial Officer C Ramakrishnan said that the company expected to improve its India profit margins, as it continues to focus on cutting operational costs, but the demand outlook was clouded by the slowing economic growth.

“We continue to see sluggish economic activity,” he said. “We continue to see demand pressure in the market.”

Tata Motors, which depends on JLR for 90 per cent of the group’s profit, said the iconic British brand’s operating margin stood at 14.8 per cent in July-September, down from 14.9 per cent a year earlier.

Revenue at the luxury British brand rose 12.8 per cent to 3.29 billion pounds in the period, less than the 34.4 per cent gain seen in the previous quarter.

Tata has grown dependent on JLR, which it bought for $2.3 billion in 2008, as domestic sales of its own models struggle.

JLR’s recent success has also driven Tata’s stock price 50 per cent higher over the past 12 months.

Profit from the company’s Tata-branded Indian business, which had fallen for four straight quarters, rose nearly eight-fold to Rs8.67 billion. That was mainly because the company took an exceptional charge in the year-earlier quarter.

Domestic sales of Tata’s own brand of cars and trucks have sagged due to India’s cooling economy.

Tata also faces strong competition in India from global carmakers such as Ford Motor Co and Volkswagen and truck manufacturers such as Daimler as they scale up operations in the company’s backyard.

Shares in Tata Motors ended 0.9 per cent higher ahead of earnings announcement at 269.35 rupees, while the main Mumbai market index closed 0.5 per cent higher.

Reuters
NEWS UPDATES
Oman
Foundation stone laid for Omani-owned Palm Mall
Ministry honours students, teachers and institutions
Middle East College staff explore Spain
‘Oman 2014-15’ published
Conservation of ecosystem on mountains stressed at forum
Dhofar governor visits PDO southern projects
Other Top Stories
Tunisia election marks transition to full democracy
Oman’s heritage inspires Zubair calendar
Liberia turnout low as Ebola fear keeps voters at home
US jets strike Baghdadi militia targets in Aleppo
MSM records highest 1-day gain in 5 years
India
Government, BJP seek consensus in conversion law
Conversion row won’t hit Modi’s development agenda, says Shah
3 workers killed in Manipur bomb blast
Shanghai seeks cooperation with Mumbai in IT, tourism sectors
Modi a man on a mission: Gabbard
Rape case reopened after 24 years
CBI to file final report in defence land scam
Congress leaders lock horns over liquor policy
Uranium production falls as Jharkhand mine stops operations
Napoleon quits DMK, joins BJP
Pakistan
Sympathisers of terrorists live among us: Nisar
Traumatised kids struggle to sleep
Lal Masjid cleric bows to pressure, condemns Peshawar massacre
Al Qaeda slams Taliban attack
Four Musharraf attackers hanged
Karachi hit by massive power breakdown
Christian group seeks own ‘census’
Middle East
Iraqi Kurds oust Baghdadi militia from north Sinjar
200 Gazans enter Egypt as Rafah reopens for two days
Sisi replaces spy chief
US-Cuba thaw shows curbs don’t work: Iran
US delivers Egypt 10 Apaches to counter terror in Sinai
Hassi asks envoys to come back
Jordan hangs 11 as death penalty ban revoked
Sudan forces raid rights group office
Asia
North Korea faces UN scrutiny over rights violations
Abbott shuffles cabinet, sets focus on financial issues, jobs
Taliban attack, roadside bomb claim 14 lives in Afghanistan
Seven killed in Philippines ‘hostage drama’ inferno
Australian mom charged with murder of eight kids
Smurfs, dwarves evoke Xmas spirit in China
Business
SGRF share purchase, attractive valuation make market buoyant
Global M&A deals rise 40%, hit 7-year high
S. Arabia, Kuwait not to cut oil output
Royalty settlement dents Ooredoo profit
Sebi widens black money probe
Iata seeks policy support to boost Indian carriers
Rajan seeks RBI autonomy amid rate cut rants
India cuts exposure to US securities to $77.5b
Xiaomi valuation to cross $45b after $1b fund-raising
Bumpy ride ahead for Russian economy
Europe
British N-power plants ‘highly vulnerable to drone attacks’
Belarus leader seeks to revive Ukraine talks
French cops kill man after police station attack
Turkish TV show fined over ‘dance with stranger’ stunt
Greek leftist lead shrinks in polls
Turkey accuses EU of starting ‘dirty campaign’
Italian couple saves horses from butcher’s knife
Sports
UAE win inaugural women’s Gulf Cup
Real are Club World Cup champs
Valencia move to fourth in La Liga
Qatar 2022 World Cup dates in March, says Fifa
Bremen upset Dortmund in Bundesliga
ISL champions Kolkata pocket Rs80m
Mavs end 10-game season losing streak
Azaan competes with top golfers
Accept DRS, players to BCCI
Ali in hospital with pneumonia
Aussie media slate ‘whingeing’ India after Test loss
Johnson secures Sunderland late win
Americas
Gunman kills two NY cops
Hundreds rally in US against police atrocities
Sony cyberattack not an act of war: Obama
US curbs aimed to ‘fuel unrest, oust Maduro’
Castro rejects change to political system after thaw in US ties

Sports


International

© 2013 Oman Tribune. All rights reserved. Best viewed in 800 X 600 resolution